liberalisation in india

Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient.

With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real integration of the Indian economy into the global economy. This era of reforms has also ushered in a remarkable change in the Indian mindset, as it deviates from the traditional values held since Independence in 1947, such as self reliance and socialistic policies of economic development, which mainly due to the inward looking restrictive form of governance, resulted in the isolation, overall backwardness and inefficiency of the economy, amongst a host of other problems. This, despite the fact that India has always had the potential to be on the fast track to prosperity.

Now that India is in the process of restructuring her economy, with aspirations of elevating herself from her present desolate position in the world, the need to speed up her economic development is even more imperative. And having witnessed the positive role that Foreign Direct Investment (FDI) has played in the rapid economic growth of most of the Southeast Asian countries and most notably China, India has embarked on an ambitious plan to emulate the successes of her neighbors to the east and is trying to sell herself as a safe and profitable destination for FDI. Economic liberalization is a very...

...India’s Challenges in the 21st Century
Towards a more Equitable, Inclusive and Sustainable IndiaIndia Facts and Achievements
India is a country of continental proportions and rich cultural heritage. The civilizational history of India goes back to more than 5000 years. In ancient times India was considered as one of the leading lights of the world and its glory was spread far and wide all across the corners of the earth. Throughout its history, India has evolved and reinvented herself. India is the birthplace and cradle of four popular religions of the world, namely, Hinduism, Buddhism, Jainism, and Sikhism. The contributions and achievements of Indians in the fields of science &amp; technology, architecture, and culture is widely acknowledged. India one of the oldest civilizations in world has a long history. There are 325 spoken languages and 1,652 dialects. India considers 18 languages as her official languages. There are 29 states and five union territories within the federal system of the Government of India. She has 3,28 million sp. Kilometers of landed area and 7,516 kilometers of coastline. Second largest population in the world with a population of 1.3 billion. She publishes 5600 dailies, 15000 weeklies and 20000 periodicals in 21 languages with a combined circulation of 142 million.
It is the largest democracy in the...

...Need to Explore Innovative Approaches to Sustain High Growth With Stability; Challenge is to Harness this Growth to Make the Development Process More Inclusive, Strengthen Food Security, Improve Education Opportunities and Health Facilities Both in Rural and Urban Areas ; Discussions Underway to Build Consensus on Further Liberalisation of the FDI Policy in Retail and Defence Sector: FM
The Union Finance Minister Shri Pranab Mukherjee said that there is need to explore innovative approaches to sustain high growth with stability. Shri Mukherjee said that the challenge of sustaining high growth has become more complex because of rapid globalisation and the growing influence of global developments, economic as well as non-economic on routine domestic concerns. He said that therefore, the policy makers have to be far more alert and prompt with their response. The Finance Minister Shri Mukherjee was delivering his keynote address at a Conference on US-India Economic and Financial Partnership in Washington DC yesterday. He was sharing the dais with Mr Timothy Geithner, Secretary, US Department of Treasury. The daylong conference was being organised by Confederation of Indian Industry (CII) in collaboration with Brookings Institute of US.
The Union Finance Minister Shri Pranab Mukherjee said that India’s economic reforms have contributed to the Indian growth story. He said that this year, we commemorate two decades of the...

...used to come to India to buy condiments and in return India used to buy ammunition.
So, the point is that - globalisation is not a new concept. In the good old days, globalisation even more prevalent because Indian spices, silk handicrafts, gold, sliver jewellery, etc., were ubiquitous everywhere in Europea.
In the past globalisation meant quid pro quo i.e., one thing for another. But in the early 20thcentury, everything changed when France introduced the system of protectionism and every nation began to create boundaries.
Protectionism destroyed globalisation in total. But again in the late 20th century the winds of globalisation began to blow. Dr. Allen Green Span as well as Dr. Paul Walker began to egg the nation in favour of globalisation and it was July 1, 1991, when India became the part and parcel of globalisation and today every nation, which happens to be a pursuer of globlisation derives plenty of basketfuls of fruits.
The word "goalisation", which connotes where all the nations join their hands d create a kind of synergy to do business or any commercial, cultural or educational activities, in which every participant nation should beneficiary. Globalisation in a nutshell is "one for all and all for no. The purpose behind globalisation has been to open the portals for each and every nation in different fields. A nation can buy from other nation and sell to other nation.
At the time when many analysts predict a booming...

...For 43 long years the government-owned Life Insurance Corporation of India (LIC) held a monopoly. It is only at the dawn of the twenty-first century that the sector was finally deregulated. Reforms were initiated with the passage of the Insurance Regulatory and Development Authority Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has regulated the opening up of the insurance sector, which has seen in total 23 life and 24 non-life private companies are operating in India.
In India, the decision to liberalize was not easily implemented since there was resistance to privatization. After all, this would mean:
1. Ending the government monopoly on mobilizing large-scale funds;
2. LIC, a successful life insurance company, would face the heat;
3. The foreign insurance companies would come marching in.
That was not all. There were other concerns too. Would new market entrants hire away all the best employees of LIC? Would the world-renowned foreign insurers that would enter the market lure current and future Indian policyholders? How would the citizens of India benefit from liberalization? What would be the impact on India’s capital markets?
These and many other questions were debated for several years until 1999. The first private insurance companies began operations in 2001.
The outcome of Liberalization
Opening up the sector has transformed the...

...price rates.
5. Another example of Pepsi, when the Pepsi factory was under its setting up process in the Punjab, the farmers of Punjab protested because the Pepsi authority committed to purchase the potatoes of the farmer but later on the reject and told the farmer that there potatoes are not up to their standards which is used in making up wafers chips and they have imported potatoes from the foreign countries.
6. Only 30 % is mandatory to purchase from Small and medium enterprises (SME's). What about rest 70%?
7. The large supermarket will import rest 70% which will increase current account deficit of the India. It will demotivate the small and medium scale industries. Hence it will increase unemployment.
In a developing country like India allowing FDI may help in booming the economy. But, this will only be up to a certain period of time only. Initially, India will get employment but that may also affect the middle class people who are mostly depended on small business. The employment provided by FDI will be of low class like, sweepers, security guards, etc. FDI saying that the farmers will be benefited but, their land used for cultivating the crops by spraying large amount of pesticides will be infected.
Ex. FDI using one farmers land for one year. It will cultivate large amount of crops by using pesticides indirectly affecting the land's quality. After one year that land will be poisoned. Then FDI will shift to...